Correlation Between Baosheng Media and INEO Tech
Can any of the company-specific risk be diversified away by investing in both Baosheng Media and INEO Tech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Baosheng Media and INEO Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baosheng Media Group and INEO Tech Corp, you can compare the effects of market volatilities on Baosheng Media and INEO Tech and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Baosheng Media with a short position of INEO Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baosheng Media and INEO Tech.
Diversification Opportunities for Baosheng Media and INEO Tech
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baosheng and INEO is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Baosheng Media Group and INEO Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INEO Tech Corp and Baosheng Media is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Baosheng Media Group are associated (or correlated) with INEO Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INEO Tech Corp has no effect on the direction of Baosheng Media i.e., Baosheng Media and INEO Tech go up and down completely randomly.
Pair Corralation between Baosheng Media and INEO Tech
Given the investment horizon of 90 days Baosheng Media Group is expected to generate 0.47 times more return on investment than INEO Tech. However, Baosheng Media Group is 2.11 times less risky than INEO Tech. It trades about -0.01 of its potential returns per unit of risk. INEO Tech Corp is currently generating about -0.25 per unit of risk. If you would invest 198.00 in Baosheng Media Group on September 1, 2024 and sell it today you would lose (6.00) from holding Baosheng Media Group or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Baosheng Media Group vs. INEO Tech Corp
Performance |
| Timeline |
| Baosheng Media Group |
| INEO Tech Corp |
Baosheng Media and INEO Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baosheng Media and INEO Tech
The main advantage of trading using opposite Baosheng Media and INEO Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baosheng Media position performs unexpectedly, INEO Tech can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in INEO Tech will offset losses from the drop in INEO Tech's long position.| Baosheng Media vs. MGO Global Common | Baosheng Media vs. National CineMedia | Baosheng Media vs. Impact Fusion International | Baosheng Media vs. Steel Connect |
| INEO Tech vs. Beyond Commerce | INEO Tech vs. Baosheng Media Group | INEO Tech vs. MGO Global Common | INEO Tech vs. CMG Holdings Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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